August 04, 2020
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       Florida Senate - 2010                      CS for CS for SB 1188
       
       
       
       By the Committees on Finance and Tax; and Commerce; and Senators
       Altman and Crist
       
       
       
       593-04308-10                                          20101188c2
    1                        A bill to be entitled                      
    2         An act relating to spaceflight; amending s. 14.2015,
    3         F.S.; providing for the Office of Tourism, Trade, and
    4         Economic Development to administer corporate income
    5         tax credits for commercial spaceflight projects;
    6         amending s. 213.053, F.S.; authorizing the Department
    7         of Revenue to share information relating to corporate
    8         income tax credits for commercial spaceflight projects
    9         with the Office of Tourism, Trade, and Economic
   10         Development; amending s. 220.02, F.S.; revising the
   11         order in which credits against the corporate income
   12         tax or franchise tax may be taken; amending s. 220.13,
   13         F.S.; providing that the amount taken as a credit for
   14         a commercial spaceflight project must be added to
   15         taxable income; prohibiting a deduction from taxable
   16         income for any net operating loss taken as a credit
   17         against corporate income taxes or transferred;
   18         amending s. 220.16, F.S.; authorizing the amount of
   19         payments received in exchange for transferring a
   20         certain net operating loss to be allocated to this
   21         state; creating s. 220.194, F.S.; providing
   22         legislative intent; defining terms; authorizing
   23         nontransferable corporate income tax credits,
   24         transferable net operating loss tax credits, and
   25         machinery and equipment tax credits for certified
   26         commercial spaceflight businesses engaged in
   27         commercial spaceflight projects; specifying tax credit
   28         amounts and eligibility criteria; requiring that a
   29         business demonstrate eligibility to claim a tax credit
   30         to the satisfaction of the Office of Tourism, Trade,
   31         and Economic Development and the Department of
   32         Revenue; requiring a business to submit an application
   33         to the Office of Tourism, Trade, and Economic
   34         Development for approval to earn credits; specifying
   35         the required contents of an application; requiring the
   36         Office of Tourism, Trade, and Economic Development to
   37         approve or deny an application within 60 days after
   38         receipt; requiring that a business apply to be
   39         certified by the Office of Tourism, Trade, and
   40         Economic Development in order to take or transfer a
   41         credit; requiring the Office of Tourism, Trade, and
   42         Economic Development to recommend approval or denial
   43         of an application for certification within 60 days
   44         after receipt; specifying the required contents of an
   45         application for certification; requiring the executive
   46         director of the Office of Tourism, Trade, and Economic
   47         Development to approve or deny the application for
   48         certification within 30 days after receiving the
   49         recommendation for approval or denial; requiring that
   50         the Office of Tourism, Trade, and Economic Development
   51         submit a copy of a certification for tax credits to
   52         the Department of Revenue; providing procedures to
   53         transfer a tax credit; authorizing the Department of
   54         Revenue to perform audits and investigations necessary
   55         to verify the accuracy of returns; authorizing the
   56         Office of Tourism, Trade, and Economic Development to
   57         revoke or modify a certification granting eligibility
   58         for tax credits under certain circumstances; requiring
   59         a certified commercial spaceflight business to pay any
   60         required tax within 60 days after receiving notice
   61         that previously approved tax credits have been revoked
   62         or modified; authorizing the Department of Revenue to
   63         assess additional taxes, interest, or penalties;
   64         authorizing the Office of Tourism, Trade, and Economic
   65         Development to adopt rules; requiring the Office of
   66         Tourism, Trade, and Economic Development to submit an
   67         annual report to the Governor, the President of the
   68         Senate, and the Speaker of the House of
   69         Representatives on the activities of the commercial
   70         launch zone incentive program; providing for
   71         application; providing an effective date.
   72  
   73  Be It Enacted by the Legislature of the State of Florida:
   74  
   75         Section 1. Paragraph (f) of subsection (2) of section
   76  14.2015, Florida Statutes, is amended to read:
   77         14.2015 Office of Tourism, Trade, and Economic Development;
   78  creation; powers and duties.—
   79         (2) The purpose of the Office of Tourism, Trade, and
   80  Economic Development is to assist the Governor in working with
   81  the Legislature, state agencies, business leaders, and economic
   82  development professionals to formulate and implement coherent
   83  and consistent policies and strategies designed to provide
   84  economic opportunities for all Floridians. To accomplish such
   85  purposes, the Office of Tourism, Trade, and Economic Development
   86  shall:
   87         (f)1. Administer the Florida Enterprise Zone Act under ss.
   88  290.001-290.016, the community contribution tax credit program
   89  under ss. 220.183 and 624.5105, the tax refund program for
   90  qualified target industry businesses under s. 288.106, the tax
   91  refund program for qualified defense contractors and space
   92  flight business contractors under s. 288.1045, contracts for
   93  transportation projects under s. 288.063, the sports franchise
   94  facility program under s. 288.1162, the professional golf hall
   95  of fame facility program under s. 288.1168, the expedited
   96  permitting process under s. 403.973, the Rural Community
   97  Development Revolving Loan Fund under s. 288.065, the Regional
   98  Rural Development Grants Program under s. 288.018, the Certified
   99  Capital Company Act under s. 288.99, the Florida State Rural
  100  Development Council, the Rural Economic Development Initiative,
  101  the corporate income tax credits for commercial spaceflight
  102  projects under s. 220.194, and other programs that are
  103  specifically assigned to the office by law, by the
  104  appropriations process, or by the Governor. Notwithstanding any
  105  other provisions of law, the office may expend interest earned
  106  from the investment of program funds deposited in the Grants and
  107  Donations Trust Fund to contract for the administration of the
  108  programs, or portions of the programs, enumerated in this
  109  paragraph or assigned to the office by law, by the
  110  appropriations process, or by the Governor. Such expenditures
  111  shall be subject to review under chapter 216.
  112         2. The office may enter into contracts in connection with
  113  the fulfillment of its duties concerning the Florida First
  114  Business Bond Pool under chapter 159, tax incentives under
  115  chapters 212 and 220, tax incentives under the Certified Capital
  116  Company Act in chapter 288, foreign offices under chapter 288,
  117  the Enterprise Zone program under chapter 290, the Seaport
  118  Employment Training program under chapter 311, the Florida
  119  Professional Sports Team License Plates under chapter 320,
  120  Spaceport Florida under chapter 331, Expedited Permitting under
  121  chapter 403, and in carrying out other functions that are
  122  specifically assigned to the office by law, by the
  123  appropriations process, or by the Governor.
  124         Section 2. Paragraph (z) is added to subsection (8) of
  125  section 213.053, Florida Statutes, to read:
  126         213.053 Confidentiality and information sharing.—
  127         (8) Notwithstanding any other provision of this section,
  128  the department may provide:
  129         (z)Information relative to tax credits taken under s.
  130  220.194 to the Office of Tourism, Trade, and Economic
  131  Development or to Space Florida.
  132  
  133  Disclosure of information under this subsection shall be
  134  pursuant to a written agreement between the executive director
  135  and the agency. Such agencies, governmental or nongovernmental,
  136  shall be bound by the same requirements of confidentiality as
  137  the Department of Revenue. Breach of confidentiality is a
  138  misdemeanor of the first degree, punishable as provided by s.
  139  775.082 or s. 775.083.
  140         Section 3. Subsection (8) of section 220.02, Florida
  141  Statutes, is amended to read:
  142         220.02 Legislative intent.—
  143         (8) It is the intent of the Legislature that credits
  144  against either the corporate income tax or the franchise tax be
  145  applied in the following order: those enumerated in s. 631.828,
  146  those enumerated in s. 220.191, those enumerated in s. 220.181,
  147  those enumerated in s. 220.183, those enumerated in s. 220.182,
  148  those enumerated in s. 220.1895, those enumerated in s. 221.02,
  149  those enumerated in s. 220.184, those enumerated in s. 220.186,
  150  those enumerated in s. 220.1845, those enumerated in s. 220.19,
  151  those enumerated in s. 220.185, those enumerated in s. 220.187,
  152  those enumerated in s. 220.192, those enumerated in s. 220.193,
  153  and those enumerated in s. 288.9916, and those enumerated in s.
  154  220.194.
  155         Section 4. Paragraphs (a) and (b) of subsection (1) of
  156  section 220.13, Florida Statutes, are amended to read:
  157         220.13 “Adjusted federal income” defined.—
  158         (1) The term “adjusted federal income” means an amount
  159  equal to the taxpayer’s taxable income as defined in subsection
  160  (2), or such taxable income of more than one taxpayer as
  161  provided in s. 220.131, for the taxable year, adjusted as
  162  follows:
  163         (a) Additions.—There shall be added to such taxable income:
  164         1. The amount of any tax upon or measured by income,
  165  excluding taxes based on gross receipts or revenues, paid or
  166  accrued as a liability to the District of Columbia or any state
  167  of the United States which is deductible from gross income in
  168  the computation of taxable income for the taxable year.
  169         2. The amount of interest which is excluded from taxable
  170  income under s. 103(a) of the Internal Revenue Code or any other
  171  federal law, less the associated expenses disallowed in the
  172  computation of taxable income under s. 265 of the Internal
  173  Revenue Code or any other law, excluding 60 percent of any
  174  amounts included in alternative minimum taxable income, as
  175  defined in s. 55(b)(2) of the Internal Revenue Code, if the
  176  taxpayer pays tax under s. 220.11(3).
  177         3. In the case of a regulated investment company or real
  178  estate investment trust, an amount equal to the excess of the
  179  net long-term capital gain for the taxable year over the amount
  180  of the capital gain dividends attributable to the taxable year.
  181         4. That portion of the wages or salaries paid or incurred
  182  for the taxable year which is equal to the amount of the credit
  183  allowable for the taxable year under s. 220.181. This
  184  subparagraph shall expire on the date specified in s. 290.016
  185  for the expiration of the Florida Enterprise Zone Act.
  186         5. That portion of the ad valorem school taxes paid or
  187  incurred for the taxable year which is equal to the amount of
  188  the credit allowable for the taxable year under s. 220.182. This
  189  subparagraph shall expire on the date specified in s. 290.016
  190  for the expiration of the Florida Enterprise Zone Act.
  191         6. The amount of emergency excise tax paid or accrued as a
  192  liability to this state under chapter 221 which tax is
  193  deductible from gross income in the computation of taxable
  194  income for the taxable year.
  195         7. That portion of assessments to fund a guaranty
  196  association incurred for the taxable year which is equal to the
  197  amount of the credit allowable for the taxable year.
  198         8. In the case of a nonprofit corporation which holds a
  199  pari-mutuel permit and which is exempt from federal income tax
  200  as a farmers’ cooperative, an amount equal to the excess of the
  201  gross income attributable to the pari-mutuel operations over the
  202  attributable expenses for the taxable year.
  203         9. The amount taken as a credit for the taxable year under
  204  s. 220.1895.
  205         10. Up to nine percent of the eligible basis of any
  206  designated project which is equal to the credit allowable for
  207  the taxable year under s. 220.185.
  208         11. The amount taken as a credit for the taxable year under
  209  s. 220.187.
  210         12. The amount taken as a credit for the taxable year under
  211  s. 220.192.
  212         13. The amount taken as a credit for the taxable year under
  213  s. 220.193.
  214         14. Any portion of a qualified investment, as defined in s.
  215  288.9913, which is claimed as a deduction by the taxpayer and
  216  taken as a credit against income tax pursuant to s. 288.9916.
  217         15.The amount taken as a credit for the taxable year under
  218  s. 220.194.
  219         (b) Subtractions.—
  220         1. There shall be subtracted from such taxable income:
  221         a. The net operating loss deduction allowable for federal
  222  income tax purposes under s. 172 of the Internal Revenue Code
  223  for the taxable year, except that any net operating loss taken
  224  as a credit to corporate income taxes owed or that is
  225  transferred, pursuant to s. 220.194(3)(b), may not be deducted
  226  by the seller,
  227         b. The net capital loss allowable for federal income tax
  228  purposes under s. 1212 of the Internal Revenue Code for the
  229  taxable year,
  230         c. The excess charitable contribution deduction allowable
  231  for federal income tax purposes under s. 170(d)(2) of the
  232  Internal Revenue Code for the taxable year, and
  233         d. The excess contributions deductions allowable for
  234  federal income tax purposes under s. 404 of the Internal Revenue
  235  Code for the taxable year.
  236  
  237  However, a net operating loss and a capital loss shall never be
  238  carried back as a deduction to a prior taxable year, but all
  239  deductions attributable to such losses shall be deemed net
  240  operating loss carryovers and capital loss carryovers,
  241  respectively, and treated in the same manner, to the same
  242  extent, and for the same time periods as are prescribed for such
  243  carryovers in ss. 172 and 1212, respectively, of the Internal
  244  Revenue Code.
  245         2. There shall be subtracted from such taxable income any
  246  amount to the extent included therein the following:
  247         a. Dividends treated as received from sources without the
  248  United States, as determined under s. 862 of the Internal
  249  Revenue Code.
  250         b. All amounts included in taxable income under s. 78 or s.
  251  951 of the Internal Revenue Code.
  252  
  253  However, as to any amount subtracted under this subparagraph,
  254  there shall be added to such taxable income all expenses
  255  deducted on the taxpayer’s return for the taxable year which are
  256  attributable, directly or indirectly, to such subtracted amount.
  257  Further, no amount shall be subtracted with respect to dividends
  258  paid or deemed paid by a Domestic International Sales
  259  Corporation.
  260         3. In computing “adjusted federal income” for taxable years
  261  beginning after December 31, 1976, there shall be allowed as a
  262  deduction the amount of wages and salaries paid or incurred
  263  within this state for the taxable year for which no deduction is
  264  allowed pursuant to s. 280C(a) of the Internal Revenue Code
  265  (relating to credit for employment of certain new employees).
  266         4. There shall be subtracted from such taxable income any
  267  amount of nonbusiness income included therein.
  268         5. There shall be subtracted any amount of taxes of foreign
  269  countries allowable as credits for taxable years beginning on or
  270  after September 1, 1985, under s. 901 of the Internal Revenue
  271  Code to any corporation which derived less than 20 percent of
  272  its gross income or loss for its taxable year ended in 1984 from
  273  sources within the United States, as described in s.
  274  861(a)(2)(A) of the Internal Revenue Code, not including credits
  275  allowed under ss. 902 and 960 of the Internal Revenue Code,
  276  withholding taxes on dividends within the meaning of sub
  277  subparagraph 2.a., and withholding taxes on royalties, interest,
  278  technical service fees, and capital gains.
  279         6. Notwithstanding any other provision of this code, except
  280  with respect to amounts subtracted pursuant to subparagraphs 1.
  281  and 3., any increment of any apportionment factor which is
  282  directly related to an increment of gross receipts or income
  283  which is deducted, subtracted, or otherwise excluded in
  284  determining adjusted federal income shall be excluded from both
  285  the numerator and denominator of such apportionment factor.
  286  Further, all valuations made for apportionment factor purposes
  287  shall be made on a basis consistent with the taxpayer’s method
  288  of accounting for federal income tax purposes.
  289         Section 5. Subsection (5) is added to section 220.16,
  290  Florida Statutes, to read:
  291         220.16 Allocation of nonbusiness income.—Nonbusiness income
  292  shall be allocated as follows:
  293         (5)The amount of payments received in exchange for
  294  transferring a net operating loss as authorized by s. 220.194 is
  295  allocable to this state.
  296         Section 6. Section 220.194, Florida Statutes, is created to
  297  read:
  298         220.194Corporate income tax credits for commercial
  299  spaceflight projects in Florida’s commercial launch zone.—
  300         (1)INTENT.—The intent of this section is to create
  301  incentives to attract commercial launch, payload, research and
  302  development, and other commercial space business to this state.
  303         (2)DEFINITIONS.—As used in this section, the term:
  304         (a)“Certified commercial spaceflight business” means a
  305  commercial spaceflight business that has been certified by the
  306  office as meeting all of the requirements to obtain at least one
  307  of the approved tax credits available under this section,
  308  including any approval to transfer a credit.
  309         (b)“Commercial launch zone” means an area within spaceport
  310  territory in this state.
  311         (c)“Commercial spaceflight business” means a business
  312  that:
  313         1.Is registered with the Secretary of State to do business
  314  in this state; and
  315         2.Is currently undertaking one or more of the following
  316  activities in this state which are intended to result in a
  317  launch from a commercial launch zone: designing, manufacturing,
  318  testing, or assembling a launch vehicle, reentry vehicle,
  319  satellite, station, or components thereof; providing a launch
  320  service or reentry service; or providing the payload for a
  321  launch vehicle or reentry vehicle.
  322  
  323  A commercial spaceflight business may participate in more than
  324  one spaceflight project at a time and may conduct work on a
  325  commercial, governmental, or United States defense-related
  326  project and remain certified or qualified for certification.
  327         (d)“Commercial spaceflight project” means activities
  328  performed in this state by a commercial spaceflight business
  329  which qualify it to be certified, including activity related to
  330  the launch of a launch vehicle, reentry vehicle, satellite, or
  331  space station from a commercial launch zone in this state, or
  332  its return to a spaceport commercial launch zone in this state.
  333  The term includes a launch service, reentry service, or any
  334  process that validates hardware or components to meet design and
  335  workmanship criteria for space launch or reentry vehicles per
  336  United States Department of Defense and National Aeronautics and
  337  Space Administration guidelines.
  338         (e)“Launch” means to place or attempt to place a launch
  339  vehicle and any payload from a commercial launch zone in this
  340  state into a suborbital trajectory, into Earth orbit in outer
  341  space, or otherwise into outer space.
  342         (f)“Launch service” means an activity in this state
  343  related to the preparation of a launch vehicle and any payload
  344  for launch and the conduct of a launch.
  345         (g)“New employee” means a Florida resident who begins
  346  full-time employment in Florida with a commercial space flight
  347  business after January 1, 2011, and who has not been previously
  348  employed on a full-time basis in this state within the preceding
  349  12 months on a commercial space flight project, by a commercial
  350  space flight business seeking certification, or a successor
  351  business or affiliate. The term does not include a person who is
  352  a partner, majority stockholder, or owner of the business or a
  353  person who is employed in a temporary construction job or
  354  principally involved with the construction of real property.
  355         (h)“New job” means the full-time employment of a new
  356  employee, as defined in paragraph (g), by a commercial space
  357  flight business in activities occurring in this state directly
  358  associated with a commercial space flight project. The term
  359  shall be defined in a manner that is consistent with terms used
  360  by the Agency for Workforce Innovation and the United States
  361  Department of Labor for purposes of unemployment compensation
  362  tax administration and employment estimation. To meet the
  363  requirement for certification specified in subsection (5), a new
  364  job must:
  365         1.Have paid new employees at least 115 percent of the
  366  statewide or countywide average annual private-sector wage for
  367  the 3 taxable years immediately preceding filing an application
  368  to be certified to take a credit under this section.
  369         2.Have required that the new employee perform duties on a
  370  regular full-time basis in this state for an average of at least
  371  36 hours per week each month for the 3 taxable years immediately
  372  preceding filing an application to be certified to take a credit
  373  under this section.
  374         3.Not be held by a person who has previously been included
  375  as a new employee on any application for any credit authorized
  376  by this section.
  377         (i)“Created new jobs” means the number by which new jobs,
  378  as defined in paragraph (h), on the application for
  379  certification is greater than the total number of full-time jobs
  380  located in this state as stated on an application for approval
  381  to earn credits.
  382         (j)Office” means the Office of Tourism, Trade, and
  383  Economic Development within the Executive Office of the
  384  Governor.
  385         (k)“Outer space” means an altitude of at least 50 miles
  386  above the Earth’s surface.
  387         (l)“Payload” means an object built or assembled in this
  388  state which a commercial spaceflight business has prepared to
  389  place in outer space by means of a launch vehicle or reentry
  390  vehicle, including components, built or assembled in this state,
  391  of the vehicle specifically designed or adapted for the object
  392  and built or assembled in this state.
  393         (m)“Reentry” means to return or attempt to return a
  394  reentry vehicle and any payload from Earth orbit, or from outer
  395  space, to a commercial launch zone in this state.
  396         (n)“Reentry service” means an activity conducted in this
  397  state related to the preparation of a reentry vehicle and any
  398  payload for reentry and conduct of the reentry.
  399         (o)“Spaceport territory” has the same meaning as provided
  400  in s. 331.303.
  401         (p)“Space vehicle” means any spacecraft, satellite, upper
  402  stage, or launch vehicle system.
  403         (q)“Successful launch” means a launch from a commercial
  404  launch zone in this state which successfully places a launch
  405  vehicle or reentry vehicle and payload from Earth into a
  406  suborbital trajectory, into Earth orbit in outer space, or
  407  otherwise into outer space.
  408         (r)Taxpayer” has the same meaning as defined in s.
  409  220.03.
  410         (s)Total tax credits that may be approved for any state
  411  fiscal year” means, for any state fiscal year, the sum of the
  412  tax credits approved for taxpayers whose taxable year begins on
  413  or after January 1 of the calendar year preceding the start of
  414  the applicable state fiscal.
  415         (3)TAX CREDITS.—The following credits, having been
  416  approved and certified pursuant to subsection (5), may be taken
  417  on a final return for a taxable year beginning on or after
  418  January 1, 2014:
  419         (a)Nontransferable corporate income tax credit.A
  420  certified commercial spaceflight business may take an approved
  421  tax credit not to exceed 50 percent of the business’s tax
  422  liability under this chapter for the taxable year in which the
  423  credit is taken. The maximum tax credit amount that may be
  424  approved for a business for a taxable year is $1 million. The
  425  total nontransferable tax credits that may be approved for any
  426  state fiscal year pursuant to this paragraph year may not exceed
  427  $10 million.
  428         (b)Transferable net operating loss tax credit.
  429         1. A certified commercial spaceflight business may be
  430  approved to transfer, in whole or in part, its Florida net
  431  operating loss that would otherwise be available to be taken on
  432  a return filed pursuant to this chapter. The maximum tax credit
  433  amount that may be approved for transfer by a business for a
  434  taxable year is $2.5 million. The total transferable tax credits
  435  that may be approved for any state fiscal year pursuant to this
  436  paragraph may not exceed $25 million. However, any outstanding
  437  credit that is carried forward by a transferee may not be
  438  considered in calculating this annual limit. To transfer the
  439  transferable credit, the business must:
  440         a.Have been approved to transfer a transferrable tax
  441  credit for the taxable year in which it is transferred;
  442         b.Have incurred a qualifying net operating loss on
  443  activity in this state directly associated with one or more
  444  commercial space flight projects in any of its 3 previous
  445  taxable years;
  446         c.Not be 50 percent or more owned or controlled, directly
  447  or indirectly, by another corporation that has demonstrated
  448  positive net income in any of the 3 previous taxable years of
  449  ongoing operations; and
  450         d.Not be part of a consolidated group of affiliated
  451  corporations, as filed for federal income tax purposes, which in
  452  the aggregate in any of the 3 previous taxable years
  453  demonstrated positive net income.
  454         2.The amount that may be claimed and transferred by a
  455  business is equal to:
  456         a.One hundred percent of the net operating loss that would
  457  otherwise be available to be claimed on a return filed pursuant
  458  to this chapter during its first full year of operations in this
  459  state.
  460         b.One hundred percent of the net operating loss that would
  461  otherwise be available to be claimed on a return filed pursuant
  462  to this chapter during its second full year of operations in
  463  this state.
  464         c.One hundred percent of the net operating loss that would
  465  otherwise be available to be claimed on a return filed pursuant
  466  to this chapter during its third full year of operations in this
  467  state.
  468         (c)Machinery and equipment credit.A certified commercial
  469  spaceflight business may take an approved tax credit if it
  470  invests at least $500,000 in machinery and equipment over a
  471  period not to exceed 3 taxable years if such machinery has been
  472  purchased in this state and exclusively used in this state for
  473  one or more commercial spaceflight projects in this state.
  474         1.An investment in machinery and equipment may be claimed
  475  only one time by a commercial spaceflight business for the
  476  corporate income tax credit authorized by this paragraph.
  477  However, the purchase of the machinery and equipment may also be
  478  exempt from the sales and use tax under the exemption in s.
  479  212.08(5)(b).
  480         2.The amount of the credit is equal to 7.5 percent of the
  481  sales price of the machinery and equipment.
  482         3.The business may take a credit for no more than 50
  483  percent of its corporate income tax liability in the taxable
  484  year in which the credit is taken, up to a maximum of $5
  485  million. If credit granted under this paragraph is not fully
  486  used in any one taxable year because of insufficient tax
  487  liability, the unused amount may be carried forward for up to 5
  488  taxable years.
  489         4.The total credits that may be approved for any state
  490  fiscal year pursuant to this paragraph may not exceed $20
  491  million.
  492         (4)ADMINISTRATION.
  493         (a)Unless transferred pursuant to this section, credits
  494  awarded under this section may be granted only against the
  495  corporate income tax liability generated by or arising out of a
  496  commercial spaceflight project in this state, as documented in
  497  the certified commercial spaceflight business’s annual audit
  498  prepared by a certified public accountant licensed to do
  499  business in this state and as verified by the office.
  500         (b)A certified spaceflight business may not file a
  501  consolidated return for the purposes of claiming the tax
  502  incentives described in paragraphs (3)(a) and (c).
  503         (c)It is the responsibility of the certified commercial
  504  spaceflight business or transferee to demonstrate to the
  505  satisfaction of the office and the department that it is
  506  eligible to take the credits approved under this section.
  507         (5)APPLICATION AND CERTIFICATION.
  508         (a)To claim a tax credit pursuant to this section, a
  509  commercial spaceflight business must first submit an application
  510  to the office for approval to earn credits. The application must
  511  be filed by the date established by the office. The application
  512  must include such information as is required by the office. In
  513  addition to any other information that the office may require,
  514  any corporation wishing to be approved for a tax credit
  515  available under this section must provide a complete description
  516  of the activity in this state that demonstrates to the office
  517  the applicant’s likelihood to be certified to take or transfer a
  518  credit. The applicant must also provide a description of the
  519  total amount and type of credits for which approval is sought.
  520  The office is authorized to consult with Space Florida regarding
  521  the qualifications of any applicant. The applicant shall provide
  522  an affidavit certifying that all information contained in the
  523  application is true and correct. Approval of the credits under
  524  this section shall otherwise be accomplished on a first-come,
  525  first-served basis, based upon the date complete applications
  526  are received by the office. A taxpayer may not submit more than
  527  one complete application during a particular state fiscal year.
  528  The office may not accept an incomplete placeholder application,
  529  and such an application will not secure a place in the first
  530  come, first-served application line. The office has 60 days
  531  after the receipt of an application within which to issue a
  532  notice of intent to deny or approve an application for credits.
  533  If a business does not receive approval for a tax credit due to
  534  the exhaustion of the annual tax credit authorizations, the
  535  business may reapply in the following year for those credits
  536  that then may be available to the business and the business
  537  shall have priority over other applicants for an approved
  538  credit. The office shall make a determination on the eligibility
  539  of an applicant for the credits sought and shall approve the
  540  credits that the applicant may later be certified to take. The
  541  office is responsible for ensuring that the corporate income tax
  542  credits approved in each fiscal year to all applicants do not
  543  exceed the limits provided for in this section. The office is
  544  authorized to adopt the guidelines, application materials, and
  545  rules necessary to administer this section.
  546         (b)At the time a business seeks to be certified to take,
  547  and thereafter to transfer, if authorized, an approved credit,
  548  it must submit an application to the office in order to be
  549  certified to take such credit along with a $250 nonrefundable
  550  fee. The application must include:
  551         1.The name and physical Florida address of the taxpayer.
  552         2.Documentation demonstrating to the satisfaction of the
  553  office that:
  554         a.The taxpayer is a commercial spaceflight business.
  555         b.The business has engaged in a qualifying commercial
  556  spaceflight project or projects before taking a credit under
  557  this section.
  558         3.In addition to any requirement specific to a credit,
  559  documentation that the business has complied with all of the
  560  following:
  561         a.Created 35 new jobs, as defined in this section, located
  562  in this state and directly associated with an individual
  563  commercial spaceflight project, or projects during its
  564  immediately preceding 3 taxable years;
  565         b.Invested a total of at least $15 million in this state
  566  on a commercial spaceflight project or projects during its
  567  immediately preceding 3 taxable years; and
  568         c.Participated in a commercial spaceflight project that
  569  resulted in a successful launch from a commercial launch zone in
  570  this state during its immediately preceding 3 taxable years.
  571         4.The total amount and types of credits sought.
  572         5.An acknowledgment that a transfer of a tax credit shall
  573  be accomplished pursuant to subsection (6).
  574         6.A copy of an audit or audits of the preceding 3 taxable
  575  years, prepared by a certified public accountant licensed to
  576  practice in this state, which identifies that portion of the
  577  business’s activities in this state related to commercial
  578  spaceflight projects in this state.
  579         7.An acknowledgement that the business must file an annual
  580  report on the project’s progress with the office.
  581         8.Any other information necessary to demonstrate that the
  582  applicant meets the job creation, investment, and other
  583  requirements of this section.
  584         (c)Within 60 days after receipt of the application, the
  585  office shall evaluate the application for certification and
  586  recommend the business for certification or denial. The
  587  executive director of the office must approve or deny the
  588  application within 30 days after receiving the recommendation
  589  from the office. The office must provide a letter of
  590  certification to the applicant, if approved, consistent with any
  591  restrictions on the credit being certified. If the office denies
  592  any part of the requested credit, the office must inform the
  593  applicant of the grounds for the denial. A copy of the
  594  certification shall be submitted to the department within 10
  595  days after the executive director’s decision.
  596         (d)Each business may be approved for only one credit for
  597  any state fiscal year and may not claim any credit more than one
  598  time.
  599         (6) TRANSFERABILITY OF CREDIT.—
  600         (a) For certified credits transferrable pursuant to this
  601  section, any corporation allowed to transfer a credit, in whole
  602  or in part, to any taxpayer by written agreement may do so
  603  without transferring any ownership interest in the property
  604  generating the credit or any interest in the entity owning such
  605  property. The transferee is entitled to apply the credits
  606  against the tax with the same effect as if the transferee had
  607  incurred the eligible costs.
  608         (b)To perfect the transfer, the transferor shall provide
  609  the department with a written transfer statement that has been
  610  approved by the office notifying the department of the
  611  transferor’s intent to transfer the tax credits to the
  612  transferee; the date that the transfer is effective; the
  613  transferee’s name, address, and federal taxpayer identification
  614  number; the tax period; and the amount of tax credits to be
  615  transferred. The department shall, upon receipt of a transfer
  616  statement conforming to the requirements of this section,
  617  provide the transferee and the office with a certificate
  618  reflecting the tax credit amounts transferred. A copy of the
  619  certificate must be attached to each tax return for which the
  620  transferee seeks to apply such tax credits.
  621         (7)ADMINISTRATION; AUDIT AUTHORITY; RECAPTURE OF CREDITS.—
  622         (a)In addition to its existing audit and investigative
  623  authority, the department may perform any additional financial
  624  and technical audits and investigations, including examining the
  625  accounts, books, and financial records of the tax credit
  626  applicant, which are necessary to verify the accuracy of the
  627  return and to ensure compliance with this section. The office
  628  and Space Florida shall provide technical assistance when
  629  requested by the department on any technical audits or
  630  examinations performed under this subsection.
  631         (b)It is grounds for forfeiture of previously claimed tax
  632  credits if the department determines, as a result of an audit or
  633  examination, or from information received from the office, that
  634  a certified commercial spaceflight business, or in the case of
  635  transferred tax credits, a taxpayer received tax credits under
  636  this section to which the certified commercial spaceflight
  637  business or taxpayer was not entitled. The certified commercial
  638  spaceflight business or transferee is responsible for filing an
  639  amended return reflecting the disallowed credits and paying any
  640  tax due as a result of the amendment.
  641         (c)If the certified commercial spaceflight business’s
  642  Florida corporate income tax return is adjusted by amendment,
  643  recomputation, or redetermination such that any item entering
  644  into the computation of a claimed credit has been changed, the
  645  taxpayer must notify the department by filing an amended return.
  646  The amount of any credit award not supported by the amended
  647  return shall be deemed a deficiency to be remitted with the
  648  amended return and is otherwise subject to s. 220.23. The
  649  certified commercial spaceflight business is also liable for a
  650  penalty equal to the amount of the credit claimed or
  651  transferred, reduced in proportion to the amount of the net
  652  operating loss certified for transfer over the amount of the
  653  certified net operating loss disallowed. The applicant and its
  654  successors shall maintain all records necessary to support the
  655  reported net operating loss.
  656         (d)The office may revoke or modify any certification
  657  granting eligibility for tax credits under this section if it is
  658  discovered that the certified commercial spaceflight business
  659  made a false statement, or representation, in any application,
  660  record, report, plan, or other document filed in an attempt to
  661  receive tax credits under this section. The office shall
  662  immediately notify the department of any revoked or modified
  663  orders affecting previously granted tax credits. Additionally,
  664  the certified commercial spaceflight business must notify the
  665  department of any change in its tax credit claimed.
  666         (e)The certified commercial spaceflight business must file
  667  with the department an amended return or other report required
  668  by the department by rule and must pay any required tax and
  669  interest within 60 days after the certified commercial
  670  spaceflight business receives notification from the office that
  671  previously approved tax credits have been revoked or modified.
  672  If the revocation or modification order is contested, the
  673  certified commercial spaceflight business must file an amended
  674  return or other report as provided in this paragraph within 60
  675  days after a final order is issued following proceedings.
  676         (f)The department may assess an additional tax, penalty,
  677  or interest pursuant to s. 95.091.
  678         (8)RULES.—
  679         (a)The office, in consultation with Space Florida, shall
  680  adopt rules to administer this section, including rules relating
  681  to the certification forms for commercial spaceflight businesses
  682  to complete, and the application and certification procedures,
  683  guidelines, and requirements necessary to administer this
  684  section.
  685         (b)The department may adopt rules to administer this
  686  section, including rules relating to:
  687         1.The forms required to claim a tax credit under this
  688  section, the requirements and basis for establishing an
  689  entitlement to a credit, and the examination and audit
  690  procedures required to administer this section.
  691         2.The implementation and administration of the provisions
  692  allowing a transfer of a net operating loss as a tax credit,
  693  including rules prescribing forms, reporting requirements, and
  694  specific procedures, guidelines, and requirements necessary to
  695  perform the transfer.
  696         3.The minimum portion of the credit that is available for
  697  transfer.
  698         (9)ANNUAL REPORT.—The office, in cooperation with Space
  699  Florida and the department, shall submit an annual report of the
  700  commercial launch zone incentive program’s activities to the
  701  Governor, the President of the Senate, and the Speaker of the
  702  House of Representatives by November 30 of each year, beginning
  703  in 2014.
  704         Section 7. This act shall take effect upon becoming a law,
  705  except that the tax credits authorized by this act may not be
  706  applied to returns filed for any tax period before January 1,
  707  2014.

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